What causes debt?

Home Advice Debt Advice What causes debt?

How do people end up in debt?

Understanding debt and what causes debt is vital for everyone.

older person with debts

Many people believe that addictions and bad budgeting cause debt. While these can be contributing factors in a very small number of cases the true cause of debt is far more simple.

It usually happens when circumstances change, like when you’re ill and can’t work.

The cut in Universal Credit, Covid consequences and rising fuel prices are examples of things beyond the control of individuals that push them into debt.

What causes debt? Poor mental health?

Studies have revealed that poor mental health and debt are linked. However, scientists are yet to prove whether one causes the other.

However, research has shown that debt and poor mental health feed off each other in a downward spiral. Simply, stress makes managing money harder and as a result, creates more stress.

The need for debt advice

Last year, we:

  • Gave specific debt advice to over 600 people.
  • Helped over 1,000 households to keep the wolf from the door with fuel vouchers.
  • Dealt with 9,500 issues concerning money.

Why come to us for help?

Our charity has FCA accreditation, meaning you’ll receive expert advice and quality service.

The service is free to anyone who needs help. So, speaking to us won’t add to your financial concerns.

Our independence means that, unlike some financial service providers, there are no hidden motives behind the advice we provide.

We’re confidential. So, you don’t have to worry about anyone finding out that you have a debt issue.

Being impartial means that we take protected characteristics seriously. You won’t be judged; not on your beliefs, age, race, sexual orientation, gender or anything else. We’ll just give you the advice you need.

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